The headline – “Hospital: Solve bigger problem // Medicare payment system is broken, Reid chief says”
From this headline, I took away that the hospital executive said that Medicare was the problem. What he (Reid Memorial Hospital President Craig Kinyon) actually said was:
KINYON: We have gone from trying to fix the uninsured, to expanding Medicare, and we still have a broken Medicare system of reimbursement. Uninsured (bad debt and charity care) are about $36 million a year at Reid. Health care reform costs to fix this nationally are about $1 trillion. Medicare and Medicaid write-offs, NOT paid by Medicare/Medicaid and/or the patient are over $180 million per year.
There is NO mention of relief for this bigger and out of hand problem.
For the insured patient, 47 cents on every dollar we charge goes to pay for Medicare/Medicaid, bad debt/charity writeoffs.
So, what he actually said, apparently, was that when lumped together Medicare, Medicaid, bad debt, and charity adds $0.47 to the cost of privately insured patients. We don’t know whether Medicare is a substantial factor in this write-up. (It’s kind of like the joke about how, when Bill Gates walks into a bar, the average patron is worth millions.) If, for example, Medicare was a small part of the problem in the equation, and the uninsured were a big part of the problem, then moving a bunch of the patients from the “uninsured” column to the “Medicare” column, that $0.47 would go down.
And if Medicare is such a problem, I guess I don’t understand why every medical provider doesn’t opt out, charge the remaining patients 1/3 less, and corner the market.